Supermarkets cut food prices

18/09/2008

Supermarkets Tesco and Asda are slashing their food prices - in a bid to compete with budget superstores such as Aldi.

Figures show that the low-price retailer is attracting increasing numbers of customers, as the credit crunch and rising inflation puts the squeeze on family budgets.

In response, Asda has announced 5,000 price cuts targeted at low-income customers, with its entire Smart Price range discounted.

Meanwhile, Tesco has launched 350 new own-brand "discounter-style" goods, the Guardian reports.

Richard Brasher, commercial director at the supermarket, said: "We will make sure that if there is a price war we will win it."

Government figures released earlier this week showed that inflation hit 4.7 per cent last month - a 16-year high.

Food prices have shown still sharper increases, and have gone up by 13 per cent over the past year.

Tags; Budgeting Advice, Young Family Finances, Retirement Money Problems, Recent Graduate Debt,

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